{"id":20839,"date":"2022-08-02T13:42:52","date_gmt":"2022-08-02T13:42:52","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=20839"},"modified":"2022-08-02T13:42:54","modified_gmt":"2022-08-02T13:42:54","slug":"mortgage-rates-rise-ahead-of-feds-big-announcement","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/mortgage-rates-rise-ahead-of-feds-big-announcement\/","title":{"rendered":"Mortgage Rates Rise Ahead of Fed\u2019s Big Announcement"},"content":{"rendered":"\n

Mortgage Rates Rise Ahead of Fed\u2019s Big Announcement<\/p>\n\n\n\n

Mortgage rates rose slightly this week ahead of the Federal Reserve\u2019s highly anticipated meeting next Tuesday, when it is expected to increase its benchmark rate by up to a full percentage point. What impact could that have on mortgage rates ahead?<\/p>\n\n\n\n

\u201cEven though the upcoming rate hike will be more aggressive, it\u2019s expected to have a smaller impact on mortgage rates,\u201d Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS\u00ae, writes at the association\u2019s blog<\/a>. \u201cData shows that mortgage rates have already priced in some of the effects of the upcoming Fed\u2019s rate hikes.\u201d<\/p>\n\n\n\n

That would be welcome news to home buyers who are getting nervous about rapidly increasing borrowing costs. Rising mortgage rates are tamping down housing demand, as existing-home sales in June were down 14.2% from a year earlier, according to NAR data<\/a>. The Census Bureau also reports that builders have slowed new-home construction<\/a> as more buyers get priced out.<\/p>\n\n\n\n

\u201cThe housing market remains sluggish as mortgage rates inch up for the second consecutive week,\u201d says Sam Khater, Freddie Mac\u2019s chief economist. \u201cConsumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand.\u201d<\/p>\n\n\n\n

Home affordability is worsening, with the costs of buying a home now about 80% more expensive than in June 2019 before the pandemic, Evangelou says. Nearly 25% of buyers who purchased their home in 2019 couldn\u2019t buy at today\u2019s higher prices and mortgage rates, she adds. The median price for an existing home climbed to a record high in June, reaching $416,000\u2014up 13.4% compared to a year earlier, according to NAR data.<\/p>\n\n\n\n

Freddie Mac reports the following national rates for the week ending July 21:<\/p>\n\n\n\n